Largest European IPO ever
Volkswagen is listing the Porsche sports car division today. If you want to buy a piece of Porsche, you will initially have to pay around €82.50 for it. Nice car hook: the share is traded on the Frankfurt stock exchange under the name P911.
With the shares that will become available for trading, Volkswagen expects to raise around 9 billion euros. At the beginning of this year, Volkswagen announced that it was considering listing Porsche separately. That is one way of raising capital. Prior to the IPO, the Porsche shares were split into common shares and preference shares, which give owners more rights and benefits. Some of it is now tradable. With success, by the way, because soon investors paid more than 5 percent more than the original price for the share.
Volkswagen believes that ‘separating’ the brands will help the company switch more quickly in the transition to electric driving and self-driving vehicles.
“Porsche gets more freedom to do business and still continues to benefit from the advantages that it has as part of a large group,” said then CEO Herbert Diess at the beginning of this year.
Porsche can look forward to a market value of 77 billion euros, making this initial public offering (IPO) the largest ever in Europe, according to Porsche. Volkswagen AG is selling a total of 25 percent of its Porsche preference shares to investors.
Photo: Vice-Chairman Lutz Menschke (left) and Chairman Oliver Blume
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– Thanks for information from Autoweek.nl